9.57 USD
-0.14 (-1.44%)
9.57 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ERIC. ERIC was compared to 48 industry peers in the Communications Equipment industry. While ERIC has a great profitability rating, there are some minor concerns on its financial health. ERIC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. ERIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ERIC had positive earnings in the past year.
In the past year ERIC had a positive cash flow from operations.
ERIC had positive earnings in 4 of the past 5 years.
ERIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.72%, ERIC belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
The Return On Equity of ERIC (24.01%) is better than 89.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.20%, ERIC belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ERIC is in line with the industry average of 12.31%.
The last Return On Invested Capital (15.20%) for ERIC is above the 3 year average (10.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 15.2% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
1.3 Margins
ERIC's Profit Margin of 10.26% is amongst the best of the industry. ERIC outperforms 81.25% of its industry peers.
ERIC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 12.97%, ERIC belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Operating Margin of ERIC has grown nicely.
Looking at the Gross Margin, with a value of 47.62%, ERIC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ERIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% |
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
ERIC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ERIC has about the same amount of shares outstanding.
ERIC has more shares outstanding than it did 5 years ago.
ERIC has a better debt/assets ratio than last year.
2.2 Solvency
ERIC has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
ERIC's Debt to FCF ratio of 1.45 is fine compared to the rest of the industry. ERIC outperforms 70.83% of its industry peers.
ERIC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
ERIC has a Debt to Equity ratio of 0.35. This is in the lower half of the industry: ERIC underperforms 68.75% of its industry peers.
Although ERIC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC1.9
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ERIC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, ERIC is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
A Quick Ratio of 0.94 indicates that ERIC may have some problems paying its short term obligations.
The Quick ratio of ERIC (0.94) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 541.12% over the past year.
The earnings per share for ERIC have been decreasing by -17.01% on average. This is quite bad
Looking at the last year, ERIC shows a decrease in Revenue. The Revenue has decreased by -2.65% in the last year.
ERIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
3.2 Future
Based on estimates for the next years, ERIC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.35% on average per year.
The Revenue is expected to decrease by -0.85% on average over the next years.
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ERIC is valuated reasonably with a Price/Earnings ratio of 10.52.
Based on the Price/Earnings ratio, ERIC is valued cheaper than 95.83% of the companies in the same industry.
ERIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.54.
With a Price/Forward Earnings ratio of 13.36, ERIC is valued correctly.
ERIC's Price/Forward Earnings ratio is rather cheap when compared to the industry. ERIC is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. ERIC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than ERIC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ERIC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.74 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
ERIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ERIC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ERIC's earnings are expected to grow with 58.69% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y97.02%
EPS Next 3Y58.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, ERIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.88, ERIC pays a better dividend. On top of this ERIC pays more dividend than 89.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.96, ERIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of ERIC is nicely growing with an annual growth rate of 22.02%!
ERIC has paid a dividend for at least 10 years, which is a reliable track record.
As ERIC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ERIC pays out 37.84% of its income as dividend. This is a sustainable payout ratio.
The dividend of ERIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.84%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
9.57
-0.14 (-1.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner Change-18.49%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap31.90B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.55
Price Target9.21 (-3.76%)
Short Float %1.01%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.29
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.11%
Min EPS beat(2)20.62%
Max EPS beat(2)77.6%
EPS beat(4)3
Avg EPS beat(4)34.33%
Min EPS beat(4)-10.72%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-29.88%
EPS beat(12)9
Avg EPS beat(12)-11.71%
EPS beat(16)10
Avg EPS beat(16)-8.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)-0.48%
PT rev (3m)7.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.05%
EPS NY rev (1m)1.11%
EPS NY rev (3m)20.56%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.52 | ||
| Fwd PE | 13.36 | ||
| P/S | 1.23 | ||
| P/FCF | 9.74 | ||
| P/OCF | 8.72 | ||
| P/B | 2.88 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 6.87 |
EPS(TTM)0.91
EY9.51%
EPS(NY)0.72
Fwd EY7.48%
FCF(TTM)0.98
FCFY10.27%
OCF(TTM)1.1
OCFY11.47%
SpS7.77
BVpS3.32
TBVpS1.45
PEG (NY)0.03
PEG (5Y)N/A
Graham Number8.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 15.2% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 46.36% | ||
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% | ||
| FCFM | 12.65% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
ROICexc(3y)14.83%
ROICexc(5y)17.86%
ROICexgc(3y)47.09%
ROICexgc(5y)43.4%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y7.91%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y4.9%
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC7.99%
ROIC/WACC1.9
Cap/Depr(3y)47.04%
Cap/Depr(5y)51.35%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year111.11%
EBIT Next 3Y21.86%
EBIT Next 5Y15.14%
FCF growth 1Y392.6%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y169.74%
OCF growth 3Y5.8%
OCF growth 5Y22.35%
ERICSSON (LM) TEL-SP ADR / ERIC FAQ
What is the fundamental rating for ERIC stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERIC.
Can you provide the valuation status for ERICSSON (LM) TEL-SP ADR?
ChartMill assigns a valuation rating of 9 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.
How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?
ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ERIC stock?
The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 10.52 and the Price/Book (PB) ratio is 2.88.
Can you provide the financial health for ERIC stock?
The financial health rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 4 / 10.